wallet.dat is the only file you need to save. If you have the newest version 100 addresses are "premade" and stored in your wallet which means you have a buffer and don't have to backup every time. Previously, you would need to backup after every SEND because the change would go back to you at a new address which wouldn't be in your backup.

An SD card is smart. I don't know why I didn't do that before, I'm going to do it now.

You can protect your wallet.dat from hacking by encrypting it (using a password-protected key).

To be really safe, keep at least 3 copies of the file in different medias. Encrypted copies by the way.

To all: I think it's really imperative that the client has built-in encryption and backup features before a 1.0 release could be done... I hope I'm not the only one to think this! (and sorry, but no, I don't know enough C++ to help you...)

I'd suggest using Clonezilla for backing up your drive. It's free software and easy to use.

Here is what you can do for maximum safety:

1) Use a separate physical machine just for Bitcoin. Any working 10 year-old laptop or PC with Linux installed will do.

2) Important: This machine must never be connected to the internet.

3) On this machine you set up a "savings account". Run Bitcoin (while disconnected), to generate a wallet.dat.

4) Then encrypt your wallet.dat using Truecrypt or similar. Use a 20 character passphrase and a keyfile. A hidden volume doesn't hurt either if you live in places like the UK.

5) Backup your encrypted wallet.dat in at least 3 different places. One should be geographically separated from the other two. I recommend cloud storage such as Dropbox or Wuala. Remember to upload the encrypted wallet.dat only from your other, online machine.

6) Copy your Bitcoin address from your offline machine to your online machine. Only the address, not the wallet.dat.

7) Shred the unencrypted wallet.dat file on your offline machine. Simply deleting is not enough. You can use the shred command in linux. Power off the machine and remove the battery.

8 ) Now, from your online machine, send the Bitcoins to the "savings account" address. Keep a smaller amount of coins in the online "current account".

If you ever decide to spend the coins in the savings account repeat steps 3-8 with a fresh wallet.dat

Before sending large amounts, make sure you test this method first with 0.01 BTC!


Of course, this lengthy procedure is overkill if you just own a few hundred coins.

Then I would recommend an online wallet provider such as mybitcoin or mtgox.

They will take care of all the technicalities of securing bitcoins for you. Just keep in mind that they too are not immune to hacker attacks, technical faults, bankruptcy, etc.

If the file is always encrypted I don't see why running on a not-so-secure-system would be a problem...

That's why I think the client should handle built-in encryption.

Exactly. This especially applies to Windows. The "user-friendly" features there are leaving so many traces of everything everywhere, that it is difficult to hide anything from anybody at all. Also, lack of trusted application repositories with digital signatures allows a lot of possibilities of trojan & virus automated installation.

This is one of the reasons i stopped using it. I don't like to be traced or spied upon. Everyone deserves privacy.

Thanks for all your responses! I'm really thankful there's so many helpful people on here. I just figured out how to do encryption and I've just got truecrypt. I only have one computer at the moment, and I'm running windows xp unfortunately. I'm an artist by trade and windows runs the programs I need for work best. I'll have to build another computer I think to be able to run linux and store my coins properly.

So maybe I should not keep a copy of my wallet file on my computer when I'm not using it? Is that smart? And just keep 3 copies of the same encrypted file elsewhere when I'm not using it, for instance one flash drive, one sd card, and upload one to dropbox? I haven't used dropbox yet, but I know someone who has and it seems good.

Also, is it common to use multiple wallet files? It seems like as long as I can keep them in folders labeled properly, it would be a good idea and would keep me from losing everything all at once if something bad did happen to one of the wallets.

I think I'm almost ready to start trading bitcoins now. I'm really excited about it.

Ok thanks again for everyone's help, I am now a proud owner of some bitcoins! I'm glad to be started.

This discussion has got me all shook up about getting involuntarily relieved of my bitcoins.

I've got my wallet.dat backed up and stored away.  What else should I do?  Do I need to remove the client and wallet files from my (XP) machine?  Is that even possible without a full wipe of the HD?

I do a lot of types of commercial and personal commission work. Right now my main projects are a graphic novel project and a video game project. I've been needing to update my site for a while, so I just did and included a bitcoin link! My site is at www.JoeyDangerous.net, but soon it'll be a .com.